What Is A Flat Fee MLS Listing Service and Will it Hurt My Home Sale?
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Jennifer Schmidt, Contributing AuthorClose
Jennifer Schmidt Contributing AuthorJennifer Schmidt is a freelance writer based in Vancouver, Washington, who specializes in real estate, human resources, and technology. When not writing, you’ll find her scanning real estate listings for the latest housing trends and decorating ideas.
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Richard Haddad, Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
You’re a weekend warrior who enjoys tackling home renovation projects to save money. So, why not apply the same approach to selling your home?
By using a flat fee multiple listing service (MLS) service, you could save thousands of dollars in real estate commissions, keeping more money in your pocket. But is selling your house yourself truly worth the time and effort?
If you’re considering going the For Sale By Owner (FSBO) route and enlisting the help of a flat fee MLS listing service instead of a real estate agent, this guide will help you navigate all the pros and cons.
Unsure about selling FSBO?
If you don’t have the time or expertise to list your home FSBO, partner with a trusted, top agent in your market. We analyze over 27 million transactions and thousands of reviews to find you the best agent for your unique situation.
What is a flat fee MLS listing service?
A flat fee MLS is a limited service that helps sellers get their FSBO homes on the local MLS, a private directory of for-sale homes that real estate professionals use to share home details with each other.
Because the local MLS is one of the best ways to market your home to potential buyers and get maximum exposure, it’s vital to list your home on the local MLS.
Although typically only licensed real estate agents can access and post listings on a local MLS, some companies provide MLS services for a flat fee. These flat fee MLS companies enable FSBO sellers to bypass the traditional agent and get their homes included in the MLS.
Is a flat fee MLS listing service the right choice for me?
Saving on real estate commissions sounds appealing to most people, but you might still be unsure about taking on the role of a real estate agent yourself.
Joe Bourland, a top-selling agent in Peoria, Arizona, with over 20 years of experience, explained the long list of things you must have and do to sell a home successfully.
“If you […] just want MLS access and is very competent, understand the legal ramifications and process of selling a home, [as well as] construction things, have the time [for] showings, deal with the phone calls and the back and forth that is part of that process… maybe have some sort of marketing background as well, you might not need the services of a real estate agent,” says Bourland.
He explains that while a flat fee service can save you money up front, it comes at a cost. You may lack the expertise and effort required to negotiate effectively, potentially leading to fewer savings in the long run.
On the other hand, you might like being very involved in the transaction and are confident that no one else fully understands all the features of your home. But doing the majority of the work yourself means you’re also directly responsible for the results.
As you consider your options, here are some of the benefits and drawbacks of using a flat fee MLS listing service.
Pros and cons of using a flat fee MLS listing service
Pros
- No listing agent real estate commission, typically 2.5% to 3%
- Full control of all aspects of the sale from start to finish
- Known costs to be paid upfront for selling the property
Cons
- Possible commission to buyer’s agent of 2.5% to 3%, on top of the flat fee*
- Responsibility for addressing any issues that arise to protect the sale
- Mostly a self-service process that involves a lot of your time and energy
*Traditionally, sellers have covered the buyer’s agent fees, typically ranging from 2% to 3% of the home’s sale price. However, following the landmark lawsuit settlement by the National Association of Realtors (NAR), the agent commission structure has changed.
Sellers are no longer required to pay the buyer’s agent commission—buyers are now encouraged to negotiate fees directly with their agents. That said, some sellers still choose to cover this cost to attract buyers and speed up the sale. So, while a flat-fee MLS service can help you save on listing agent commissions, you may still be responsible for the buyer’s agent fee, depending on negotiations.
How does a flat fee MLS listing service compare to a traditional real estate agent?
- You receive a less personalized service compared to having an agent who can answer your questions thoroughly and immediately.
- When you pay a flat fee, you get MLS access. When you hire a real estate agent, you can expect a tailored marketing strategy plus MLS access.
- When you use a flat-fee MLS listing service, you resolve setbacks yourself. With an agent, you let a professional handle any issues arising from the transaction.
Using a top real estate agent involves more than just getting your home listed on an MLS site. This is the first step in a marketing strategy designed to attract a specific pool of buyers and set your home apart from other available properties.
A top-rated agent who has sold dozens or even hundreds of homes in your area has the advantage of knowing current market trends and strategies to sell faster with the best results.
So, how do you find a top agent? HomeLight can connect you with agents in your market who fit your selling situation. Our research shows that the top 5% of real estate agents nationwide typically sell homes for as much as 10% more than average real estate agents.
Will I really save money selling FSBO with a flat fee MLS listing service?
While you can save a significant commission by listing your home FSBO, the actual savings might diminish when you factor in the cost of your time. The ultimate profitability depends on your effectiveness in finding the right buyer, which will determine if FSBO is the best financial choice when the sale closes.
NAR data shows that FSBO homes sold for a median price of $380,000 in 2023, compared to agent-assisted homes that sold for a median price of $435,000 — a 14% difference.
Find a Top-Rated Real Estate Agent Near You
FSBO listings statistically sell for less than agent-assisted sales. HomeLight analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
How much does a flat fee MLS listing service cost?
Flat fees for MLS listing services can vary depending on the type of services you’ll need during the home-selling process. A standard listing on the MLS might cost only $300 but can stretch up to $5,000 if you decide to purchase additional services such as an agent’s help with marketing, paperwork, and the final negotiation.
As mentioned above, in addition to your fee, you may have to pay the buyer’s agent commission. “Most flat fee services tell people to offer up 2.5% to 3%, so the seller is still paying that to whoever represents the buyer as an incentive to bring a buyer to the property,” Bourland says.
What are some extra fees that I should watch out for when choosing a flat fee MLS listing service?
At a glance, a flat fee MLS listing service can save you money, but beware that some platforms come with extra fees that add up to your selling expenses. Here are some additional costs to watch out for:
- Listing changes: Some services charge for price updates, photo swaps, or description edits.
- Cancellation fees: Say you want to cancel the service because you decided you want to go with a traditional real estate agent, you might have to pay a penalty.
- Professional support: If you need extra guidance, agent assistance often comes at an additional cost.
- Marketing add-ons: Professional photos, virtual tours, or premium exposure usually aren’t included in standard packages.
- Closing assistance: Negotiation or paperwork support involves extra costs.
- Time limits: Flat fee MLS listing services charge a fee when extending your listing duration after a set period.
What is the best flat fee MLS listing service?
Even though you’re paying a flat fee, MLS listing services generally offer different levels of service. Some will offer a bare-bones listing of your home on the MLS, while others will give you tons of options for added costs. How do you find the perfect fit when not just any MLS will do?
Before committing to a flat fee MLS listing, consider the following:
Location, location, location
Since you’re selling your home locally, you want your listing to be local, too. There are hundreds of MLS databases covering various regions within each state. Listing your home locally ensures that local agents, who are familiar with your housing market, will see your listing, unlike agents from other areas who may not know your market as well.
Research and reviews
Research the company you are considering using for your listing. Do they have a lot of positive or negative reviews? Are they a member of the Better Business Bureau (BBB)? Do they have a professional website that is helpful for answering questions? Do they include an easy way to contact them, or are they more elusive?
Before choosing a particular company, ensure it has a good reputation. This will also attract real estate agents with potential buyers.
Solid communication
Bourland says good communication is key, relaying a story of how one home seller had to terminate their listing agreement because their flat-fee MLS company never returned their calls after listing the property.
This lack of communication can be frustrating to the buyer, seller, and agent when you’re trying to negotiate a deal, and answers aren’t being given in a timely manner.
Reputable and well-established flat fee MLS listing services include:
Does using a flat fee listing service hurt a home sale?
Which MLS company you use and how you market your property often will determine the success of your home sale. Here are some additional questions sellers have about how a flat fee MLS might affect a home sale:
“As real estate agents and Realtors®, we have an obligation to have a fiduciary duty to our client,” Bourland says. “So if there’s a listing that fits our client’s needs, based on the criteria we have been provided by the buyer, we’re obligated to show them the house regardless of who’s listed it.”
The obligation Bourland is referring to is part of the Code of Ethics and Standards of Practice agents agree to when they become members of NAR. Agents who are not members of the association have not specifically pledged to uphold these standards.
Typically, yes. A top agent conducts a comparative market analysis (CMA) to price the house correctly, whereas a FSBO seller may initially price the home too high and not find interested buyers until the price is adjusted to match comparable homes.
Industry experts agree that one of the most important steps when selling a house is to price it right — not too high, not too low.
Effective marketing increases home sale success by enhancing the property’s visibility, attracting more buyers, and creating demand. Professional, high-quality photos and targeted advertising can help sell faster and at a better price.
When listing your home, be sure to include the best features, such as a large kitchen and backyard. Details like gutter filters and high-efficiency light bulbs are nice to have once you move into a house but won’t be the deciding factors for buyers who are more interested in where they are going to put their couch.
Also, some MLS websites will limit the number of photos you can include with your listing. You always want to use high quality photos that aren’t dark or blurry and will showcase the best features of the home.
“The narrow phone picture that doesn’t show anything but a toilet is not the best image that you want to display,” Bourland says.
As a FSBO seller, where else can I list my home?
If you’re not interested in paying for a flat fee MLS listing service but still want to list your house FSBO, there are other sites you can choose from, including:
- Zillow (Free – For Sale By Owner)
- Facebook Marketplace
- ForSaleByOwner.com
Consider these factors before listing with a flat fee MLS service
Whether you choose to use a flat fee MLS listing, an agent, or an alternate site for selling your home, consider the following:
- Involvement: The time and energy you want to devote to your home sale
- Profit: The potential profit you might get depending on the final sale price
- Research: The reputation of the company and the specific services you get for your flat fee
- Support: The resources available to answer your questions during the process
If you’d like to connect with a top real estate agent to learn more about your best options for selling your home, use HomeLight’s Agent Match tool. With expert guidance, you can navigate the selling process smoothly, price your home competitively, and attract the right buyers for a successful sale.
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